Lyft Settles with California Drivers for $27M

5.12.16

The article, “Lyft Settles with California Drivers for $27M,” featured in USA Today, Todd Scherwin addressed the major issue remaining from the Lyft case, regarding the underlying classification of the drivers.

Todd said, the 800-pound gorilla in the room is still the question of whether drivers who use Lyft’s ride-hailing app are independent contractors or employees.

For Lyft, the agreement is worth the expense because it buys the company the opportunity to change its policies in ways that make drivers “sound and smell and act more like independent contractors, so if someone sues again in the future it’s got a better defense,” he said.

And in the interim, Lyft has been having its new drivers sign arbitration agreements that preclude them from filing class action lawsuits in the future, he said.

“They may have to deal with a bunch of little battles that continue to rage on, but at least the war is over,” he said.

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